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Animats writes "The social networking service Facebook has agreed to settle Federal Trade Commission charges that it deceived consumers by telling them they could keep their information on Facebook private, and then repeatedly allowing it to be shared and made public. The settlement is soft on Facebook; there are no fines or criminal penalties.

According to the FTC, in December 2009, Facebook changed its website so certain information that users may have designated as private – such as their Friends List – was made public. Facebook didn't warn users that this change was coming, or get their approval in advance.

Facebook represented that third-party apps that users' installed would have access only to user information that they needed to operate. In fact, the apps could access nearly all of users' personal data – data the apps didn't need.

Facebook told users they could restrict sharing of data to limited audiences – for example with "Friends Only." In fact, selecting "Friends Only" did not prevent their information from being shared with third-party applications their friends used.

Facebook had a "Verified Apps" program & claimed it certified the security of participating apps. It didn't.

Facebook promised users that it would not share their personal information with advertisers. It did.

Facebook claimed that when users deactivated or deleted their accounts, their photos and videos would be inaccessible. But Facebook allowed access to the content, even after users had deactivated or deleted their accounts.

Facebook claimed that it complied with the U.S.- EU Safe Harbor Framework that governs data transfer between the U.S. and the European Union. It didn't."Link to Original Source